Singapore Court Dismisses Tata Power's Challenges to USD 490 Million Arbitration Award

SINGAPORE — The Singapore International Commercial Court (SICC) has dismissed all applications brought by The Tata Power Company Limited to overturn arbitration awards issued in favor of investment firm Kleros Capital Partners Limited.

The ruling upholds the immediate final and binding nature of the arbitration awards. Following this decision, Tata Power is required to immediately pay Kleros a sum exceeding USD 640 million. This total comprises principal damages of USD 490.32 million, interest accruing at 5.33% per annum since November 2020—currently amounting to approximately USD 71,600 daily—alongside legal costs.

The legal dispute originated in November 2020, when Kleros commenced arbitration at the Singapore International Arbitration Centre (SIAC). The case was reviewed by a three-member tribunal comprising Professor Lawrence Boo as presiding arbitrator, Mr. Stuart Isaacs KC, and Mr. Amal K. Ganguli, a Senior Advocate and retired Judge of the Supreme Court of India.

On September 26, 2023, the tribunal unanimously ruled that Tata Power had breached agreements and duties of good faith and confidence. The tribunal found that Tata Power misused confidential information, circumvented Kleros, made misleading statements, and concealed material facts to pursue the Krutogorovo project for its own benefit.

Subsequently, on July 1, 2025, the tribunal issued its award on damages. While all three arbitrators agreed that Tata Power was liable for payment, they differed on the calculation method and final amount. The majority, consisting of Professor Boo and Mr. Isaacs KC, awarded Kleros USD 490.32 million plus simple interest of 5.33% per annum starting from November 30, 2020, until the date of payment.

In March 2026, the SICC heard Tata Power's challenges against these rulings, culminating in the recent dismissal. In addition to the principal damages and ongoing interest, previous orders require Tata Power to pay legal costs of SGD 8.29 million, plus further arbitration costs of approximately SGD 3 million.

Kleros Capital Partners Limited operates as an investment firm focused on identifying and developing large-scale resource and infrastructure opportunities.

"This ruling highlights the critical importance of international arbitration frameworks and strict adherence to contractual duties in cross-border business operations. For corporations engaging in large-scale infrastructure projects, legal compliance and the protection of confidential information are paramount. Long-running international disputes carry substantial financial risks, including mounting interest liabilities and heavy legal costs, which can significantly impact corporate balance sheets." — Dr. Shishir Gupta, Founder & CEO, StartupLanes